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Estée Lauder Said to Tap J.P. Morgan for €5 Billion Financing in Puig Merger Talks

The reported plan underscores pressure to cover cash owed to minority shareholders alongside refinancing of Puig’s debt.

Overview

  • A Spanish report relayed by WWD says Estée Lauder hired J.P. Morgan to structure roughly €5 billion in financing tied to its ongoing merger talks with Puig.
  • Expansión reports Lauder is weighing a cash-and-stock offer that would use the financing to help fund the deal.
  • The publication says Lauder would need about €3 billion to €3.5 billion in cash to pay Puig’s minority shareholders who can opt for cash.
  • Puig’s gross debt of nearly €1.5 billion would likely be refinanced as part of the transaction, according to the same report.
  • Puig shares jumped about 5.6% after the report, while Puig declined to comment and WWD said Estée Lauder could not be reached; the companies first disclosed merger talks on March 23.